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An investment's capital gain or loss is an important component of its yield. Read each statement about capital gains and indicate whether it is true

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An investment's capital gain or loss is an important component of its yield. Read each statement about capital gains and indicate whether it is true or false. Statement True False A capital gain increases an investor's yield. A capital gain results when the security's ending (sale) price is less than the beginning (purchase) price. o o A capital gain is calculated as an asset's beginning (purchase) price minus its ending (sale) price. A bond that was purchased four years ago for $950 and sold yesterday for $1,125 is realizing a capital gain of $175. Anna owns 200 shares of common stock of Venus Horticulture Co. The shares were purchased three years ago for $30.00 per share. Venus pays an annual dividend of $4.00 per share, and the shares have a current market value of $40.00 per share. Given this information, what is Anna's three-year yield on her Venus shares? O 77.00% O 62.33% O 73.33% O 91.66%

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